NIO Inc.

Ladies and gentlemen, thank you for standing by for NIO Incorporated's fourth quarter and full year 2023 earnings conference call. At this time, all participants are in listen-only mode. Today's conference call is being recorded. I will now turn the call over to your host, Mr. Rui Chen, Head of Investor Relations of the company. Please go ahead, Rui.

Good morning and good evening, everyone. Welcome to NIO's fourth quarter and full year 2023 earnings conference call. The company's financial and operating results were published in the press release earlier today and are posted at the company's IR website. On today's call, we have Mr. William Lee, Founder, Chairman of the Board and CEO, Mr. Steven Thun, CFO, and Ms. Stanley Chu, Senior VP of Finance. Before we continue, please be kindly reminded that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Security Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the view expressed today. Further information regarding risk and uncertainties is included in certain filings of the company with the US Securities and Exchange Commission, the Stock Exchange of Hong Kong Limited, and the Singapore Exchange Securities Trading Limited. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that NIO's earnings press release and this conference call include discussion of the unaudited gap financial information as well as unaudited non-gap financial measures. Please refer to NIO's press release which contains a reconciliation of the unaudited non-gap measures to comparable gap measures. With that, I will now turn the call over to our CEO, Mr. William Li. William, please go ahead.

Hello, everyone. Thank you for joining NIO's 2023 Q4 and the four-year earnings call. In Q4 of 2023, NIO delivered a total of 50,045 premium smart EVs, up 25% year-over-year. In 2023, NIO's cumulative delivery reached 160,038 units, representing a growth of 30.7% from 2022. In January and February of 2024, due to the seasonality of our industry and the Chinese New Year, NIO delivered 18,187 vehicles. On March 7th, NIO will start to deliver the 2024 models featuring enhanced performance and experience. With that, Niel's sales will gradually bounce back, and the total delivery in Q1 is expected to be between 31,000 to 33,000 units. In terms of Niel's financial performance, with continuous improvements on the bond cost, the vehicle cost margin increased to 11.9% in Q4. Now, I would like to share with you the recent highlights of our products and the operations. On December 23rd, NIO Day 2023 was held in Xi'an Shanxi province, where the smart electric executive flagship NIO 89 was unveiled. ET9 embodies near the full stack capabilities and the global leading technology. Bettering core technologies, such as the in-house development AD chip NX9031, all domain 900 volt architecture, sky-right chassis system, and the flagship safety and security, ET9 defines the technology standard for the next generation premium smart EVs. The delivery will start in Q1 2025. In the meantime, NIO will soon start to deliver its 2024 models with the configuration and the performance upgrades, including the brand new center computing cluster, ADAN, which brings the computing power to a new level. Enabled by the industry highest computing power, NIO's software release has become faster making our products more competitive. With respect to NEO Assisted and Intelligent Driving, or NAD, NEO's collective intelligence capability has seen rapid growth, with the total validated urban mileage increasing 100-fold in five months. As of the end of January, Navigate on Pilot Plus were validated and made available more than 1 million kilometers of roads in China, including 650,000 kilometers of complicated urban driving scenarios in 606 cities. In Q2, the NOP Plus for urban roads is expected to be released to all NT2 users. which will make this OTA update the largest public release of its kind in China. Through computing sharing across different domains on the central computing cluster, NomiGPT, or multi-modal large vision model, will be released soon, making the cockpit smarter and more secure. In addition, Nielsen MathMarket brand will make its debut in Q2, The fourth product will be launched in Q3 with mass delivery to start in Q4. As for the sales and service network, so far, NIO has 148 NIO houses and 352 NIO spaces, as well as 314 service centers and 62 delivery centers. About the charging and the swapping network, to date, NIO has 2,419 power swap stations worldwide, providing over 39.5 million swaps cumulatively. It also has installed over 10,000 power chargers and 11,600 destination chargers. During the Chinese New Year, On the business day, NIO completed 19,199 swaps. One of the stations on the highway provided 195 swaps. Battery swap has become the most reliable solution for NIO users. Following the battery swap cooperation with Chang'an and the GD, another two strategic cooperation agreements were signed. with JEC and Cherry in January. NIO will roll out comprehensive and in-depth cooperation on battery swap with these partners. Moreover, NIO has partnered with multiple energy companies, such as Anhui Energy Group and the China Southern Power Grid, to jointly build swap stations. The value of battery swap has been appreciated by more people. making a holistic, chargeable, swappable, and upgradable solution a well-recognized core advantage of NIO. In 2024, NIO plans to build 1,000 new battery swap stations and 20,000 chargers, bringing the total to over 3,310 swap stations and 41,000 chargers by the end of 2024. Regarding the capital market, in December, Niel received $2.2 billion U.S. dollar of strategic investment from Abu Dhabi investor Simon Houdib. The investment has further strengthened Niel's balance sheet, laying a solid foundation for Niel's investment into the next generation core technologies and products. Shouldering the core, shouldering the core corporate social responsibility and supporting global sustainable development, NIO always stayed true to its foundation vision of blue sky coming. In general, NIO was selected by corporate NICE into the 2024 Global 100 Most Sustainable Companies, making to the list for the second time in a row. NIO was placed 15th among more than 6,000 companies worldwide, up 29 sports from last year. As competition intensified in 2024, we see both challenges and opportunities, with faster deployment of charging and swapping facilities and a change in consumer behavior, the premium BEV segment to which NIO Brands belongs. will soon arrive at an inflection point of growth. In the second half, a new brand for the mass market will also become our growth level. In 2024, we will continue to focus on the corporate top priority, level up system capabilities, strengthen cost of mindset and the cost of management, so as to bring our A game to the next phase of competition. As always, thank you for your support. With that, I will now turn the call over to Stephen Kuo for his financial details. Over to you, Stephen.